Correlation Between Robert Half and Staffing 360
Can any of the company-specific risk be diversified away by investing in both Robert Half and Staffing 360 at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Robert Half and Staffing 360 into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Robert Half International and Staffing 360 Solutions, you can compare the effects of market volatilities on Robert Half and Staffing 360 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Robert Half with a short position of Staffing 360. Check out your portfolio center. Please also check ongoing floating volatility patterns of Robert Half and Staffing 360.
Diversification Opportunities for Robert Half and Staffing 360
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Robert and Staffing is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Robert Half International and Staffing 360 Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staffing 360 Solutions and Robert Half is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Robert Half International are associated (or correlated) with Staffing 360. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staffing 360 Solutions has no effect on the direction of Robert Half i.e., Robert Half and Staffing 360 go up and down completely randomly.
Pair Corralation between Robert Half and Staffing 360
Considering the 90-day investment horizon Robert Half International is expected to generate 0.16 times more return on investment than Staffing 360. However, Robert Half International is 6.07 times less risky than Staffing 360. It trades about 0.02 of its potential returns per unit of risk. Staffing 360 Solutions is currently generating about -0.01 per unit of risk. If you would invest 6,907 in Robert Half International on August 30, 2024 and sell it today you would earn a total of 563.00 from holding Robert Half International or generate 8.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Robert Half International vs. Staffing 360 Solutions
Performance |
| Timeline |
| Robert Half International |
| Staffing 360 Solutions |
Robert Half and Staffing 360 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Robert Half and Staffing 360
The main advantage of trading using opposite Robert Half and Staffing 360 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Robert Half position performs unexpectedly, Staffing 360 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Staffing 360 will offset losses from the drop in Staffing 360's long position.| Robert Half vs. Kelly Services A | Robert Half vs. Kforce Inc | Robert Half vs. Korn Ferry | Robert Half vs. TrueBlue |
| Staffing 360 vs. Robert Half International | Staffing 360 vs. ManpowerGroup | Staffing 360 vs. Kforce Inc | Staffing 360 vs. Korn Ferry |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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